The Justice Department, in collaboration with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services Office of Inspector General (HHS-OIG), has announced a $300 million settlement reached with Walgreens Boots Alliance and its subsidiaries. This resolution addresses allegations that Walgreens illegally filled millions of invalid prescriptions for opioids and other controlled substances, thereby violating the Controlled Substances Act. Additionally, the pharmacy chain allegedly sought payment from Medicare and other federal healthcare programs for many of these invalid prescriptions in violation of the False Claims Act.
The settlement amount is contingent on Walgreens' financial capacity. Should the company undergo a sale, merger, or transfer before fiscal year 2032, it will be obligated to pay an additional $50 million to the United States.
Filed on Jan. 16 and most recently amended on April 18 in the U.S. District Court for the Northern District of Illinois, the government's complaint accuses Walgreens of knowing engagement in the unlawful dispensation of controlled substance prescriptions from August 2012 through March 1, 2023. "Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit," commented Attorney General Pamela Bondi.
Additional allegations assert that Walgreens pressured its pharmacists for quick prescription fulfillment, neglecting to properly verify their legality. Compliance officials at Walgreens are accused of ignoring evidence of unlawful dispensing and withholding critical information from pharmacists.
Following the settlement on Friday, the United States will move to dismiss its complaint against Walgreens, and the company is expected to dismiss a related declaratory judgment action in Texas. "This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances," remarked John J. Durham, United States Attorney for the Eastern District of New York.
The agreement also mandates Walgreens to enter agreements with the DEA and HHS-OIG to ensure compliance with future obligations. These agreements require Walgreens to implement compliance measures for seven years, maintain procedures to verify prescription validity, provide annual employee training, and implement systems for blocking prescriptions from problematic prescribers.
Whistleblower cases under the False Claims Act also played a role in this settlement, with former Walgreens employees participating. As part of the resolution, these relators are set to receive a 17.25% share of the government's recovery.
The pursuit of this case highlights the federal commitment to eradicating healthcare fraud, using the False Claims Act as a key tool. For reports of potential health fraud, individuals can contact HHS through the provided helpline.
